The Mayor of London this morning announced that an exclusive distribution deal between Associated Newspapers and London Underground is to come to an end.

He said that the six-year-old contract, signed when morning freesheet Metro was launched, "does not allow Londoners to get the additional benefit of a free afternoon newspaper".

In a reference to Desmond's plans to launch an afternoon freesheet, Livingstone said: "It is a matter of public record that other newspaper businesses would be willing to distribute a free afternoon paper and might even pay more than we are getting for the Metro deal.

"Transport for London therefore will be taking appropriate action to bring about the distribution of a free afternoon newspaper on the tube... The additional money from a new deal would of course be invested in further improvements to the Tube," he added.

The announcement signals the imminent end of a long-running Office of Fair Trading investigation into the deal between Associated and London Underground, which began in May 2003.

A spokesman for Richard Desmond said: "The group welcomes the mayor's statement and now looks forward to the matter being resolved as quickly as possible."

The announcement follows last month's launch of Standard Lite, a free lunchtime edition of Associated Newspapers' Evening Standard.

A Desmond afternoon freesheet may also help West Ferry to fill the production hole left by the departure of The Guardian and The Observer to Newsfax, announced this morning.

Story by Josh Brooks